The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1887-08-15
HOW IVES HAS WORKED.
Dealing with Garrett and hobnob-
bling with Jay Gould.
A Man Who Manipulated Railroads
on Borrowed Money,
In Ways That are About to be
investigated.

New YORK, Aug. 13.-Assignee Crom-
well. representing the firm of Ives and Stay
nor, estimates their liabilities at not more
than si5,oOo,OOO with probability that the
indebtedness will not reach that sum. With
regard to the assets, Mr.. Cromwell said he
could not speak with certainty, but he
thought the firm would have a snug sum af-
ter all debts were paid.
Brokers generally expressed themselves as
much relieved by the failure, and said 1t re-
moved very unsettling factor from the
stock market.
Mr.. Henry Clews, when asked II there
alleged questionable transactions, replied /
am not at all sure about that. He may yet
join Ward and Fish"
The operations which havo led to the pres
ent situation of affairs began year ago last
June. when Ives organized syndicate with
the wealthy Christopher Meyer at its head.
and bought the controlling interest In the
Cincinnati, Hamilton Il Dayton road. This
road has the same relation to Cincinnati that
the Harlem road does TO New York, and was
the pet OF the Cincinnatans. Ives had him
self elected vice-president, mis- partner, Geo.
ner, X. Wilson Woodruff, secretary and
treasurer, while his banking firm became the
fiscal agency and treasury of the company,
as well as the executive headquarters. The
road had light bonded Indebtedness and
stock issue of S4,000000 The Ives party
among their first acts had the directors
authorize the issue of $4,000 900 of preferred
stock. Then Ives branched out. He was
elected president of the Cincinnati, Hamil-
ton * Indianapolis; of the Mineral Range
road. and centralized SaVpral small roads he
longing to the c. I'll. & ID. system. Last
winter the board of directors also authorized
q mortgage of S2,O00,Co0, which was taken
by the Willard syndicate. ives had also OBJ
tanned control from Alfred Sully, Maxwell 4
Graves, Irving A. Evans and others, of the
Dayton IL IrOntOn and the Dayton IL Michi-
gan roads, of which his offices here became
the headquarters, and 1t was on account Of
these purchases that his indebtedness to
these gentlemen arose.
Early in March. when Alfred Sully failed
to organize a syndicate to purchase the con-
troll of the Baltimore u Ohio properties, this
audae1ous young man stepped into his place
and made an arrangement with Robert Gar
rett, paying him $40, 900 cash and Sl,Sc1,0O0
OF the preferred stock OF the Cincinnati,
Hamilton IL Dayton. From that time on
Ives name became as well known as that of
Gould. To carry ont his plans he borrowed
money right and left. He bought a controll-
ing interest in what is known as the Van
dalia system, which was part Of the Penn
sylyania system running from indianapolis
to st. Louis. He consolidated the Dayton Il
Ironton and the Dayton q Michigan under
the name Of the Dayton, Fort Wayne & Chi
cago. tried to bond it for s., 800 900 and have
the Cincinnati, Hamilton Il Dayton lease it
and guarantee this loan. He hobnobbed
with Jay Gould, trying to sell him the Balti-
more & Ohio telegraph, but did not succeed,
the and willy financier.dropped him and gave
his securities a squeeze in the street which
ought to have taught him a lesson. but did
not Mr.. Garrett declared the big deal off,
and the king pin was knocked out Of all
Ives tremendous schemes, TO carry out
which he had piled up obligations until his
affairs ahd those of tSe roads he had manip-
ulated had becom '-icably
mixed. From - the
wall has Duen Only "a A.....sS. y
yesterday, after thus occupying public at
tenti0n, the curtain was rung down on this
act. When it is raised again, II ever II is,
the scene may be considerably changed.